Life assurance is a contract between the insured and the insurance company that in case a specified adverse event happens to the insured, the insurance company will provide monetary compensation to the insured. The events can be critical illness, terminal illness, disability or death.  Life assurance may also act as a long-term investment vehicle to meet goals such as personal development, personal education, and children’s education as many more goals. The main aim of life assurance policies is to protect the financial interests of the insured and their families.


This is a life cover that provides protection for a specified period of time, during which if the insured event happens, the insurer will pay out full sum assured. However if the term of the insurance lapses without the event happening the insurance company pays nothing. This is usually the cheapest form of life assurance since it has no value at maturity and therefore not considered an investment vehicle.


This policy is a double aged sword kind of policy since it combines both the aspects of protection and insurance. In case the insured event happens within the term of the policy, the insurance company will pay the full sum assured. In case the event does not happen, the insurance will pay the full sum assured and the accrued bonuses at maturity. This is the most common form of life assurance world over.


This policy gives the insured the chance to protect the financial aspects of his/her family after he/she is no longer there. The insured pays premiums throughout their life and in case of death at the long-term(which is inevitable for everyone eventually) the insurance company pays the sum assured and any other accrued bonuses to the beneficiaries. 


This policy is meant to take care of funeral expenses of the insured or their loved ones in the unfortunate event of their demise. The policy usually attracts small premiums and large sum assureds. Ideally, every human being is supposed to at least have this policy given its small cost and the uncertainty of life.


This policy, like the endowment policy, combines both protection and investment. The premiums paid by the insured are used to cater for the protection part and the rest used to purchase units in investment funds managed by the respective insurance company. The performance of the units depends on the performance of the investment funds linked to it.


Savings insurance policies encourage the insured to invest in their future by making regular savings in form of a life insurance policy. Unlike bank account savings, this savings tool is less tempting to withdraw. Besides, the savings in this policy accrue an interest higher than any bank would give. Ideal for single people, this policy can e used as security for a loan.